I also started out a year ago and thought I would take 3 maximum, but I did not put that in my contract or advertise as a low-ratio daycare, so when I decided to take a fourth, I just told the parents we would have a new friend joining us and that was it...nobody said a word. However, in your case it is trickier, so I agree with the others who have suggested having the new child start in June and changing your contract then. I give out new contracts every year too and I made a few changes to them in January...nobody left (although they were not major changes). Good luck! By the way, I wouldn't tell them it's because you need the money...that makes it seem like you are piling on the kids to fill your wallet...we all need more money...that is why we do this business, but I just wouldn't mention it like that.